Both Redwood Trust Inc. (NYSE:RWT) and Safehold Inc. (NYSE:SAFE) compete on a level playing field in the REIT – Diversified industry. We will evaluate their performance with regards to profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Valuation and Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Redwood Trust Inc.||227.32M||6.87||123.36M||1.09||14.78|
Table 1 showcases the gross revenue, earnings per share (EPS) and valuation of Redwood Trust Inc. and Safehold Inc. Safehold Inc. has lower revenue and earnings than Redwood Trust Inc. The company that is currently more affordable of the two stocks is the one that has a lower price-to-earnings ratio. Redwood Trust Inc.’s currently lower price-to-earnings ratio makes it the more affordable of the two businesses.
Table 2 hightlights the return on assets, return on equity and net margins of the two companies.
|Net Margins||Return on Equity||Return on Assets|
|Redwood Trust Inc.||54.27%||11.4%||1.7%|
The annual dividend that Redwood Trust Inc. pay is $1.2 per share with a dividend yield of 7.45%. Meanhile, Safehold Inc.’s yearly dividend is $0.6 per share and 2.11% dividend yield.
The following table given below contains the ratings and recommendations for Redwood Trust Inc. and Safehold Inc.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|Redwood Trust Inc.||0||0||2||3.00|
Redwood Trust Inc.’s consensus target price is $17.75, while its potential upside is 10.04%.
Insider & Institutional Ownership
Institutional investors owned 87.9% of Redwood Trust Inc. shares and 36.7% of Safehold Inc. shares. Insiders owned 0.3% of Redwood Trust Inc. shares. Competitively, 42.7% are Safehold Inc.’s share owned by insiders.
Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|Redwood Trust Inc.||-2.18%||-0.25%||1.57%||-3.92%||-0.74%||7.3%|
For the past year Redwood Trust Inc. has weaker performance than Safehold Inc.
Redwood Trust Inc. beats on 12 of the 15 factors Safehold Inc.
Redwood Trust, Inc., together with its subsidiaries, engages in mortgage banking activities in the United States. The company operates through three segments: Residential Investments, Residential Mortgage Banking, and Commercial. The Residential Investments segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations and issued by third parties and other credit risk-related investments; residential loans held for investment; mortgage servicing rights associated with residential loans; and derivative financial instruments to manage risks associated with residential loans. The Residential Mortgage Banking segment operates a mortgage loan conduit, which acquires residential loans from third-party originators for sale, securitization, or transfer to investment portfolio. This segment also includes derivative financial instruments to manage risks associated with residential loans. The Commercial segment consists of investments in multi-family securities and commercial mortgage-backed securities, as well as one remaining commercial loan investments. It qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, the company intends to distribute at least 90% of its taxable income as dividends to shareholders. Redwood Trust, Inc. was founded in 1994 and is headquartered in Mill Valley, California.
Safety, Income and Growth, Inc. is a real estate investment trust externally managed by SFTY Manager LLC. The firm acquires, own, manage, finance and capitalize ground net leases, or GNLs. It represent ownership of the land underlying commercial real estate projects that is net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon. Safety, Income and Growth, Inc. was formed on October 24, 2016 and is based in New York City.
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